Strong dollar helps JIB to 20% rise

JIB GROUP, the listed insurance broking subsidiary of Jardine Matheson, reported a 20 per cent rise in pre-tax profits to pounds 21.8m, helped by a strong dollar and improved performances in its retail and wholesale divisions. The results were at the top of the range of expectations, and the shares rose 19p to 199p.

Although retail business continued to be affected by recession in Europe and sluggish recovery in the UK, the division's profits rose 34 per cent. Disappointing results in the US led to a new focus on speciality areas such as marine, agriculture and 'affinity' business, where insurance is sold through professional associations.

John Barton, chief executive, said: 'The retail business in the US has only made a small profit. The change brings it more in line with the strategy of the rest of the group.'

JIB's wholesale division had a record year, with profits up 68 per cent. Two acquisitions - of the marine broker Pulford, Winstone and Tenant and the marine and energy broker Nicolls Pointing - contributed to the rise.

The company said improved capacity in London and Bermuda has improved prospects for its reinsurance division, but too late to help its 1993 results. Profits fell 12 per cent despite a rise in turnover.

JIB's Lloyd's members' agency again made losses. The group recently placed Christand, its dormant agency, into liquidation because of the rejection of the Lloyd's settlement offer.